Appendix I Guidelines to interviews
Questionnaire on critical developments influencing HKs position as Gateway to China
A Background Information Name respondent:
Name company respondent: Major line of business:
Function of Hong Kong office: Operation in Hong Kong started:
Type of office: Regional Headquarters/ Regional Office/ Local Office/ Independent Hong Kong office
Number of employees in Hong Kong: Job Title Respondent:
Since when have you been working for the company? Since when have you been working in Hong Kong? B Hong Kong as gateway to China
1. Is your company involved in business with China controlled from Hong Kong? 2. If it is involved, in what way?
3. How do you view Hong Kong’s position in relation to China?
4. Can you please rank the five main reasons for establishing your business in Hong Kong in stead of China? (1= most important):
1. 2. 3. 4. 5.
5. Why didn’t your company set up its business in China?
6. What do you view as Hong Kong’s main disadvantages as gateway to China? 7. Please rank the three following elements of Hong Kong as gateway to China in
order of importance to your business: - Hong Kong Economy
I. CEPA
In 2003, the Closer Economic Partnership Arrangement between Hong Kong and China was signed. This arrangement acts as a free trade arrangement between Hong Kong and China.
1. The Closer Economic Partnership Arrangement has influenced Hong Kong’s
position as gateway to China. (Agree-Disagree)1
2. How do you rate the influence of the Closer Economic Partnership Arrangement on Hong Kong’s position as gateway to China?
(Positive-Negative)
3. Why do you rate its influence that way?
4. The effect of CEPA on the Hong Kong economy overall is (Positive-Negative) 5. CEPA has resulted in enhanced market access to the Mainland Market
(Agree-Disagree)
6. The influence of CEPA on foreign, Hong Kong established firms is
(Positive-Negative)
7. CEPA makes Hong Kong more attractive to foreign firms to establish their company (Agree-Disagree)
8. CEPA is an success (Agree-Disagree) 9. Why/Why not?
10. (If appropriate) did/does it directly or indirectly influence your business in Hong Kong?
11. If it influenced your business how large an influence did it have? (Uncertain –
Minimal – Limited – Large)
12. If so, in what way?
13. Hong Kong and China have integrated more since the introduction of CEPA
(Agree-Disagree)
14. Concerning which aspects?
15. Do you know foreign, Hong Kong established firms which operate under CEPA?
- Are any of them Dutch controlled/managed firms? - Are they successful operating under CEPA? 16. What do you expect from CEPA in the next 3-5 years?
II. China’s accession to the WTO
In 2001 China entered the World Trade Organization and agreed to open up and liberalize its market more.
1. China’s accession to the WTO has influenced Hong Kong’s position as gateway to China. (Agree-Disagree)
2. How do you rate the influence of China’s accession to the WTO on Hong Kong’s position as gateway to China? (positive-negative)
3. Why do you rate its influence that way?
4. (If appropriate) did it directly or indirectly influence your business in Hong Kong?
5. If it influenced your business how large an influence did it have? (Uncertain –
Minimal – Limited – Large)
1
6. If so, in what way?
7. What do you expect of the influence of China’s development as an open and liberalized market economy on Hong Kong’s position in the next three-five years?
? Shanghai: competition as business hub location concerning
China
Shanghai has gone through a rapid development as business metropolitan over the last decade. With the opening up of China Shanghai has become a competitor of Hong Kong as gateway to China
1. The development of Shanghai as business hub has influenced Hong Kong’s position as gateway to China. (Agree-Disagree)
2. How do you rate the influence of the development of Shanghai on Hong Kong’s position as gateway to China? (Positive-Negative)
3. Why do you rate its influence that way?
4. In the future Shanghai will take over Hong Kong’s position as gateway to China (Agree-Disagree)
5. Why/why not?
6. (If appropriate) did it directly or indirectly influence your business in Hong Kong?
7. If it influenced your business how large an influence did it have on your
business? (Uncertain – Minimal – Limited – Large) 8. If so, in what way?
9. What do you expect from the competition between Shanghai and Hong Kong in the next three to five years?
III. The ongoing growth and development of Pearl River Delta
25 years ago the Pearl River Delta was largely undeveloped land. Since then it has been world’s fastest growing area in the world.1. The development of the Pearl River Delta has influenced Hong Kong’s position
as gateway to China. (Agree-Disagree)
2. How do you rate the influence of the development of the Pearl River Delta on Hong Kong’s position as gateway to China? (Positive-Negative)
3. Why do you rate its influence that way?
4. (If appropriate) did it directly or indirectly influence your business in Hong Kong?
5. If it influenced your business how large an influence did it have on your business? (Uncertain – None – Limited – Large)
6. If so, in what way?
7. What do you expect from the development of the Pearl River Delta in the next three to five years?
IV. Hong Kong’s handing over to China
1.
The transition of Hong Kong to China in 1997 has influenced Hong Kong’s position as gateway to China (Agree-Disagree)2.
How do you rate the influence of Hong Kong’s transition to China on Hong Kong’s position as gateway to China? (Positive-Negative)3.
Why do you rate its influence that way?4.
(If appropriate) did it directly or indirectly influence your business in Hong Kong?5.
If it influenced your business how large an influence did it have on your business? (Uncertain – None – Limited – Large)6.
Is so, in what way?7.
The “one country, two systems” principle works well for Hong Kong(Agree-Disagree)
8.
Why/ Why not?9.
Hong Kong and China have integrated more since the handing over(Agree-Disagree)
10.
Concerning which aspects?11.
What do you expect from the “one country, two systems” principle in next three to five years?D. Summing up
1. Please rank the importance of these four developments as influence on Hong Kong’s position as gateway to China?
2. In your opinion, are there important developments of the last decade influencing Hong Kong’s position missing in this interview?
3. Hong Kong will maintain China’s regional business center in the next three years? (Agree-Disagree)
- Why?
4. What are your company’s plans for the next three years in Hong Kong?
Expand – business as usual – gradually reducing/leaving Hong Kong?
- Why?
- What role will the China market play in that?
5. Overall, how do you view Hong Kong’s competitiveness as gateway to China? 6. How do you view Hong Kong’s role as gateway to China in the next three-five
Meeting guide: the Trade and Industry Department, Hong Kong, (18-09-2006)
Subject: Closer Economic Partnership Arrangement Hong Kong – China
Goal of research: Investigating the influence of CEPA on Hong Kong’s position as
Gateway to China (from the perspective of foreign (Dutch) (Hong Kong established) companies).
A. Looking Back
? Situation for Hong Kong established companies who wanted to do business with China before the implementation of CEPA
o Difficulties in doing business with China at that time. ? Position of Hong Kong in relation to China before the implementation of
CEPA (competition with Shanghai or other Asian metropolis?) ? Changes in the China-Hong Kong relationship since the handover of
Hong Kong to China in 1997.
? Reasons for establishing CEPA (objectives) B. Basics of CEPA
? Trade in goods ? Trade in services
? Trade and Investment Facilitation\ ? CEPA I (01-01-2004)
? CEPA II (01-01-2005) ? CEPA III (01-01-2006)
? New supplement (27-06-2006)
? Position of Hong Kong in relation to China after the implementation of CEPA (01-01-2004)
? Has CEPA proved to be successful?
? The effects of CEPA on the Hong Kong economy (changes noticed in Hong Kong economy’s composition (sectors, goods manufacturing, services) since the implementation of CEPA?)
C. Foreign companies and CEPA (established in Hong Kong or thinking about investing in Hong Kong)
? Options for foreign firms to make use of CEPA
? Gap of knowledge about CEPA by foreign firms? What knowledge is lacking?
? Optimal use of CEPA by foreign firms. (Steps (procedures) foreign companies should take to use CEPA in its most optimal way). ? Conditions of CEPA (Rules of Origin; Hong Kong service supplier) ? Needed internal changes within (foreign) companies to fulfil the CEPA
conditions.
D. Future: Expectations
? CEPA’s advantages compared with China’s WTO accession measures (trade liberalization, quota minimization etc.)
? The expectations for Hong Kong’s position as gateway to China ? (Taking into consideration the WTO liberalisations in China, the
development of institutions in China, the global interest in China and globalization)
? The integration of Hong Kong and China. (Are China and Hong Kong moving to each other (integration)? Do they supplement each other? Does Hong Kong need China? Does China need Hong Kong?) ? New CEPA measures
? Expectations for influence of CEPA on attracting foreign firms to Hong Kong
E. Summing up
? Why should foreign companies establish their business in Hong Kong if they want to do business with/in China?
Interview with HKTDC: Hong Kong as gateway to China (12-12-2006)2
I am interested in the (past or current) influence of the following developments on Hong Kong’s position as gateway to China:
1. CEPA
2. China’s accession to the WTO 3. Shanghai as growing business hub 4. Ongoing growth of Pearl River Delta 5. Hong Kong’s handing over to China.
I would like to discuss above topics shortly, but I am especially interested in the influence of CEPA on attracting foreign firms to Hong Kong, as that is the most recent development and not much can be found in the literature. Questions that I have are:
1. Do many foreign firms operate under CEPA (Dutch firms?)? 2. How can foreign companies operate under CEPA?
3. Do foreign companies establish their company in Hong Kong because of CEPA?
4. What are the prospects of CEPA in the next 3 years?
5. What are the advantages of CEPA over the WTO commitments for foreign companies?
6. What is the overall influence of CEPA on Hong Kong as gateway to China? 7. How does CEPA influence the integration between Hong Kong and China?
Furthermore:
? Hong Kong’s main advantages as gateway
? Future (3-5 years) perspectives for Hong Kong as gateway
? Difficulties in maintaining Hong Kong’s position as gateway to China
2
Appendix II Empirical Results – Companies
Interviewed Companies:
Trade sector Transportation sector
1. Van den Berg Products 1. Martinair Cargo Director of Operations Vice-President Asia 2. PromoClip Asia Limited Pacific
Managing Director 2. Damco Limited 3. China Direct Limited Managing Director
Managing Director 4. A&L International Ltd.
Director
5. Scarfell Enterprises Limited Managing Director
Seven Dutch, Hong Kong established companies, 5 in the trade sector and 2 in the logistics/transport sector were interviewed for this thesis. All companies are involved in business with(in) China. De trading companies especially source in China, in the Pearl River Delta and other manufacturing regions. The logistics/transport companies especially transport goods to and from China and Hong Kong. Some of the
companies also use China as selling market.
? Type of office in Hong Kong
Regional headquarters 2
Regional Office 1
Local Office
Independent Hong Kong office 4
? Company has been doing business in Hong Kong for:
0-5 years 3
5-10 years 1
More than 10 years 3
? Number of employees in Hong Kong
0-10 employees 4
10-50 employees 2
50-100 employees
More than 100 employees 1
? The companies were questioned what the five main competitive reasons for
establishing the office in Hong Kong were. Below are the reasons given and the amount they are mentioned by the companies.
? The Hong Kong Trade Development Council identifies three major advantages of Hong Kong, the interviewees were asked to rank these, the overall ranking resulted in:
Economy 1
Location 2
People 3
? Plans of the companies concerning their business in Hong Kong the next three years:
Companies plans next three years
Expand Business as usual Reduce/ leaving HK
? Which of the critical developments has been most important to Hong Kong’s position as Gateway to China (answer per company)
Trade-1 Trade-2 Trade-3 Trade-4 Trade-5 Trsport-1 Trsport-2 Overall
China’s accession to the WTO 3 1 1 1 2 1 2 1
The ongoing development of the
PRD 1 4 2 3 1 3 1 2
The handover of Hong Kong to
China 4 2 5 2 3 2 4 3
The installation of CEPA 2 5 3 4 4 5 3 4
Tax climate 6
Government – absence of red tape 4 Business culture 4 Staff 3 Financial Center 3 Infrastructure 3 Rule of Law 2 Network – Business Associations 2 Information on China 1 Anti-corruption 1
Each interviewee was asked to rank the developments which were then used to produce an overall ranking
? The influence of Major Critical Developments on Hong Kong’s position as Gateway to China CEPA Shang hai China WTO PRD Hand over 0 1 2 3 4 5 6
Influence of Major Developments
Extremely Negative Negative Neutral Positive Extremely positive
? Closed questions on the critical developments
Extremely
positive Positive Neutral Negative
Extremely negative
The effect of CEPA on the
overall HK economy is 2 5
The influence of CEPA on foreign established firms is
3 4
Strongly
agree Agree Neutral Disagree
Strongly disagree
CEPA has resulted in enhanced Mainland market access
4 3
CEPA makes HK a more attractive location to foreign firms
3 3 1
CEPA is a success 2 5
Shanghai will take over Hong Kong’s position as gateway to China
3 4
The “one country, two systems” principle works well for HK
2 5
Hong Kong and China have integrated more since the handover
1 4 1 1
Large Limited None Uncertain
The influence of CEPA on the interviewed
companies
The influence of China’s accession to the WTO on the
interviewed companies 3 4 The influence of Shanghai’s development on the interviewed companies 1 2 4
The influence of the development of the PRD on the interviewed companies
6 1
The influence of the handover on the
interviewed companies